Transfer Cash ISAs Discussion Area

MarkyMarkD

Most fixed rate accounts won't let you do multiple transfers at different times, but if you complete all the forms on application and specify that the second transfer should not take place until the Barclays ISA matures, that should work OK.

setecio

If I have already put this years full amount into my current ISA, can I transfer it all to another better paying ISA before the financial year end or do I have to wait until I can put in some new cash ie until I get more allowance in April ?

rb10

setecio wrote: »

If I have already put this years full amount into my current ISA, can I transfer it all to another better paying ISA before the financial year end or do I have to wait until I can put in some new cash ie until I get more allowance in April ?

You can transfer an ISA whenever you like, as long as the T&Cs of both the old and new accounts permit it (e.g. a small number of institutions will insist that you pay 'new money' into an account, and don't simply open it with a transfer).

If you are transferring money paid in during 2009/10, then this money must be transferred in whole - you cannot split this year's allowance until the new tax year.

khgibb

I've got about 16k in a Direct ISA with Halifax that has a measly 0.5% interest, and about 9k in an NS&I ISA with 2.5% interest.

I haven't subcribed at all in this year yet. I'd like to add the full 3.6k to the NS&I ISA and open up a new Santander Direct ISA to transfer the full amount from my Halifax ISA. I'll probably consider whether to transfer the NS&I ISA in the next tax year.

The reason for this is that the funds in my Halifax were I inherited and are to be used in th future on something specific, and I don't want to add to the sum in this account as it is easier to keep it separate fom my other savings.

So I have 2 questions:

1. Can you open more than one ISA in a single tax year, as long as you only subscribe new money to one of them and use the others for transfers?

2. Can you Open a new ISA and just transfer money in, but then in the same year subscribe new money to an existing ISA you have?

Baldur

khgibb wrote: »

1. Can you open more than one ISA in a single tax year, as long as you only subscribe new money to one of them and use the others for transfers?

Yes, ISA transfers are not considered as 'opening' a Cash ISA (which involves subscribing new money to an ISA, not the mere act of opening an account to receive transferred ISA funds) - you are merely transferring the same ISA from one provider to another.

2. Can you Open a new ISA and just transfer money in, but then in the same year subscribe new money to an existing ISA you have?

Yes, as above - subject to any limitations in the Terms & Conditions of your existing ISA.

ISA transfers can be carried out as often as you like. You could transfer every month if you wished (lots of interest would probaby be lost in the process, though).

MarkyMarkD

Using the right terminology might help, rather than the perverse statement (effectively) that "opening a cash ISA isn't opening a cash ISA"

Surely what you wanted to say, Baldur, is that the only restriction is on SUBSCRIBING NEW FUNDS to more than one ISA in the same tax year. In a nutshell.

Baldur

MarkyMarkD wrote: »

Surely what you wanted to say, Baldur, is that the only restriction is on SUBSCRIBING NEW FUNDS to more than one ISA in the same tax year. In a nutshell.

Many thanks for telling me what I wanted to say. When I need a scriptwriter, I will certainly be in contact...... or not.

Squish_21

I am in the process of transferring my ISA from 1 bank to another.
Might sound like a silly question but what will happen to my old ISA, will it remain open unless I specifically close it?

Also, I get paid my interest yearly in March (I think), what will happen to this money, will it just get paid into my old ISA as normal? Then I can withdraw and put it in the new one?!

10_66

Squish_21 wrote: »

I am in the process of transferring my ISA from 1 bank to another.
Might sound like a silly question but what will happen to my old ISA, will it remain open unless I specifically close it?

Also, I get paid my interest yearly in March (I think), what will happen to this money, will it just get paid into my old ISA as normal? Then I can withdraw and put it in the new one?!

You usually have a variety of options to select from on the transfer out form ie, do you want to close ISA and transfer the balance or transfer part of previous years' etc.

If you have asked for it to be closed and transfer rather than partial transfer, any accrued interest will be added to the ISA account before closing and the balance plus the accrued interest will be transferred.

You mention withdrawing in your last sentance. If you want the funds to stay in an ISA you can not withdraw the funds yourself and put them into another ISA, the process must be completed by the old ISA provider and new ISA provider.

Squish_21

10_66 wrote: »

You usually have a variety of options to select from on the transfer out form ie, do you want to close ISA and transfer the balance or transfer part of previous years' etc.

If you have asked for it to be closed and transfer rather than partial transfer, any accrued interest will be added to the ISA account before closing and the balance plus the accrued interest will be transferred.

You mention withdrawing in your last sentance. If you want the funds to stay in an ISA you can not withdraw the funds yourself and put them into another ISA, the process must be completed by the old ISA provider and new ISA provider.

Ah I see, that makes a lot more sense. Thanks!